UK stocks ended sharply lower on Friday, never once turning into the black, after trade data failed to ignite excitement among investors.
The blue-chip FTSE 100 ended down 1.2% at 6,776 and led by construction equipment provider Ashstead Group (LON:AHT) down 4.4% to 1,233p on profit-taking after the previous session’s rise on buoyant earnings.
Beer brewer Whitbread (LON:WTB) shares lost close to 4% to 4020p following a negative note from analysts at Barclays.
But it wasn’t all bad news in the beverages sector. Second-highest riser on the mid-cap FTSE 250 index was pub chain JD Wetherspoon which gained 2.4% to 946.5p after posting record full-year profits and bullish comments about the UK's prospects post-Brexit by chairman Tim Martin.
That said, rival pub group Greene King dominated the mid-cap losers, and was down 6.1% to 789p, after saying the referendum vote had led to "a softening of some economic indicators and a reduction in consumer confidence".
Trade figures showing the UK's deficit with the rest of the world narrowed slightly. Still, remarkably in light of the Brexit vote, this did not seem to capture the attention of investors. Although the data would appear on the surface to be a sign that recent sterling weakness post-Brexit has been good for exporters, the Office of National Statistics cautioned that while exports are cheaper abroad imported raw materials will be more expensive.
The FTSE 250 index closed down 1.6% at 17,894 – falling below 18,000 for the first time since the start of September.
Smaller stocks were bruised too. The FTSE AIM 100 Index ended down 0.9% at 3,805 and the FTSE AIM All-Share Index was down 0.4% at 805.
Gaining stocks in London totalled a pitiful 20%, while losers were 43% - one of the highest rates this year and 37% were unchanged.
LUNCH
Positive economic data couldn't stop FTSE 100 being in the red at lunch.
The UK benchmark is down 18 at 6,839 at the time of writing.
FTSE 250 was also sharply lower - down 111 points, or 0.61% at 18,081.
The biggest loser on Footsie was rental equipment firm Ashtead Group (LON:AHT), which shed over 3.41% to 1,246p as it fell back to earth after recent gains, having hammered out a decent rise in revenues and earnings during the three months to July.
Shares in International Consolidated Airlines (IAG) were up again today, flying 1.35% higher to 427.8p.It comes after a broker note from Deutsche Bank, which indicating a target price of 570p for the shares (currently - around 427p).
Its chief executive Willie Walsh has also said that that other airlines were keen to join the group.
It came as today, official data from the ONS showed UK construction was flat in June and July, where experts had expected a drop.
Meanwhile, the deficit in trade in goods for the UK got smaller in July as exports improved.
The total exports of goods and services rose 1.9% in July from a month ago, while imports dropped 0.5%.
In small caps, Hurricane Energy (LON:HUR) was still top of the tree with shares now up almost 45% to 36p as it posted better than expected results for its first new well at the Lancaster field in the North Sea.
App provider Mobile Streams Plc (LON:MOS) continued the journey north, with shares up almost 34% to 11.38p as it continues to bathe in this week’s announcement, that it has made serious in-roads into the Indian market.
Its Indian subsidiary has exceeded the milestone of reaching 50,000 active subscribers, or those customers that have bought from the firm in the last 60 days.
OPEN
Britain's blue chips were, well down at the open, with traders mulling Chinese inflation news and the ECB's decision not to discuss an extension of stimulus measures.
FTSE 100 was down around 13 at 6,845.
Small cap shares mirrored the mood and were also lower. FTSE AIM 100 was down 0.23%, while the AIM All-share was 0.09% lower.
Banks provided a ray of sunshine however, as RBS (LON:RBS) added 1.78% to 205.6p, while Barclays (LON:BARC) gained 1.15% to 175.25p.
As well as ECB comment, It may have been down to news that City hiring within financial firms has continued to be robust, even since the Brexit vote in late June.
Among the laggards was handbag and coat maker Burberry (LON:BRBY), which fell 1.63% to 1.264p.
In China, consumer price inflation rose 1.3% last month (August) from a year earlier, representing the lowest since October 2015 and worse that the 1.7% increase that economists had forecast.
In Junior world, Hurricane Energy (LON:HUR) certainly lived up to its name with shares soaring around 40% in early deals after it revealed better than expected results for its first new well at the Lancaster field in the North Sea.
The well measured a 620 metre oil column, extending deeper than a prior third party assessment anticipated.
It means that the company now believe that Lancaster hosts significantly more contingent resources than the previous estimate of 200mln barrels.
Elsewhere, a big faller was Botswana Diamonds plc (LON:BOD), down almost 18% at 1.63p despite it saying an intense period of exploration and drilling was about to start in its joint venture with Alrosa.
Opening snapshot at 8.15am
The FTSE 100 was down 18 points to 6,839 at open this morning.
The top winner was HSBC Holdings (LON:HSBA) up just under 1% to 578p.
The biggest loser was Burberry Group (LON:BRBY) down almost 2% to 1,260p.
News
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Preview at 6.55am
The FTSE 100 is set to open the final day of the trading week in a sluggish mood with investors disappointed the European Central Bank won’t be expanding its fiscal stimulus programme.
The spread betters are predicting the index of blue-chip shares will drift eight points lower to 6,866.7.
“European markets tumbled in afternoon trade on Thursday after the European Central Bank failed to meet the lowest of expectations for additional stimulus,” said Jasper Lawler, analyst at CMC Markets.
“There was some scope for the ECB to extend the end date of asset purchases or change the composition of those purchases.
“Neither of these happened, which was not a big surprise, but there was evident dismay in markets that according to [ECB president] Mr Draghi, they were not even discussed.”
Overnight news that North Korea had carried out a nuclear test sent ripples across Asia’s markets.
It pushed the Kospi Index 1.4% lower, while Shanghai (down 0.5%) and the ASX in Australia (off 0.9%) were pulled with it.
Hong Kong (up 1.2%) is headed for a strong end to a solid week of gains propelled by financial stocks, while Japan’s Nikkei 225 (up 0.2%) was also resilient to the reports from North Korea.
Wall Street was dragged down by tech stocks after Apple’s latest iPhone failed to wow investors. The Dow Jones ended 0.25% lower, while the broader based S&P 500 fell 0.22%.
Back here in the UK, prelims from the Wetherspoons pub chain provide the only vaguely interesting news scheduled today.
*Crude oil 46 cents lower at US$49.53.
*Gold US$5 higher at US$1,343.80.
City Headlines
*Apple raised prices on some of its products in the UK on the same day as it unveiled the latest iPhone in a move blamed by analysts on the sharp drop in sterling following Britain’s vote to leave the EU – FT.
*Sky has revealed it paid an extra £123mln in programming fees last year to its biggest shareholder 21st Century Fox, where its chairman James Murdoch is Chief Executive – Telegraph.
*Qatar Investment Authority’s stake in J Sainsbury has fallen by 3% after the sovereign wealth fund declined to pour money into new shares to help to fund the grocer’s purchase of Home Retail Group – Times.
*The government must urgently start producing new policies to encourage business investment which is ready to slump after the EU referendum, the trade association for chartered accountants urged – Times.